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IndusInd Bank And Cera Shine With Their Q2 Results, Margin Growth Evident: Result Analysis

IndusInd Bank And Cera Shine With Their Q2 Results, Margin Growth Evident: Result Analysis

Shreesh Biradar1 min read
Quick Facts
What is "IndusInd Bank And Cera Shine With Their Q2 Results, Margin Growth Evident: Result Analysis" about?
What category is this article in?
Stocks
Who wrote this article?
Shreesh Biradar, Capitalmind's research team.
When was this article published?
Published 14 October 2016.
How long does this article take to read?
1 min read
What does the "IndusInd Bank" section say?
IndusInd Bank Posted 26% growth in profits YoY for Q2. Growth in profits was supported by revenue growth of 24%. The company has reached its target of 4% net interest margin.
What does the "Cera" section say?
Cera, which came out with results today, has posted revenue growth of 12.50% and profit growth of 40.6%. The Ahmedabad based company is into sanitary ware, faucets, fittings and tiles.

IndusInd Bank

IndusInd Bank Posted 26% growth in profits YoY for Q2. Growth in profits was supported by revenue growth of 24%. The company has reached its target of 4% net interest margin.

Key TakeAways

  • Banks Net Interest Margin improved from 3.88% in Q2 last year to 4.00% for the current reported quarter.

  • CASA growth at 36.54% YoY for the current quarter.

  • Advances and Deposits growth at 26% and 39% YoY respectively.

  • Provision Coverage Ratio at 59%. The RBI prescribed ratio is at 70%. Though not mandatory but its safer for the banks maintain those levels.

  • Gross NPA’s grew at 4.46% QoQ, but the Gross NPA% declined by 0.01%. Mainly on account of higher growth in advances.

  • On NPA front the bank has been doing good and has maintained low levels.

  • Capital Adequacy Ratio (CAR) is at 15.32, well above the mandated 9.6.

indusind-bank-q2fy17-share-price-movement

Cera

Cera, which came out with results today, has posted revenue growth of 12.50% and profit growth of 40.6%. The Ahmedabad based company is into sanitary ware, faucets, fittings and tiles.

cera-q2fy17-results

  • The company’s operating margin has improved drastically. For current reported quarter the operating margin stood at 14.25%, where as for the same period last year the the operating margin was at 10.86%.

  • The major reason for the improved margins for cheaper availability of raw materials.

The share closed 1.57% below the previous close. The stocks closing price is at Rs 2632.65.